Area Housing Market Up In Oct.

The strong housing market in the Hampton Roads area continued to set a blistering pace in October, easily topping year-earlier sales on the Peninsula and even in the smaller Williamsburg market.

Home sales in the Tidewater/Peninsula market -- which includes South Hampton Roads communities -- rose nearly 6.2 percent for the month, according to the monthly housing sales survey by the Virginia Association of Realtors in Richmond. That's in line with the year-to-date trend of Tidewater/Peninsula home sales. Average prices in those markets rose to $160,007 in October from $140,571 a year earlier.

Home sales in the Williamsburg market rose nearly 1.4 percent in October, largely because rampant demand depleted supply of houses up for sale. Through the first 10 months of this year, Williamsburg home sales were up 9.9% from a year earlier.

Average home prices in the Williamsburg market jumped to $215,929 from $199,853 in October 2001.

The surge in home sales this year has come as mortgage rates have hit their lowest levels since the early 1970s.

"This is an extremely strong market that lacks only inventory," said Barry Nachman, of Century 21 Nachman Realty in Hampton.

"With the combination of the low interest rates that creates a demand greater than the supply.

"As a result, we're seeing an increase in the price of homes locally."

Nachman said the Williamsburg market differs from the Tidewater/Peninsula market in that it is a more expensive and draws many buyers from northern states, where houses and even apartments and condominiums command greater prices than do those in the Hampton Roads market.

"Williamsburg draws people because it's known as a place to retire, and it's marketed well as being just that," Nachman said.

"But it's still a very affordable area, and that's why many people want to live here."

Statewide home sales trends also remained strong. Virginia real state agents closed on 13.0 percent more homes in October than they did a year earlier.

Virginia home sales through the first 10 months of the year are up 9.4 percent.

Altogether, home buyers purchased 9,460 Virginia homes in October and 93,163 from January through October.

The 2,189 homes sold in the Tidewater/Peninsula market during October brought home sales there to 20,672 through October.

In Williamsburg, 147 homes were sold in October, bringing year-to-date sales to 1,461 homes.